Is your financial well-being important to you? It should be. Being financially stable is becoming increasingly difficult due to the economic climate these days. In this post, we will share some good tips to improve your financial situation.
Many of us aren’t really taught good and healthy financial habits, especially since the turn of the century. I believe one of the biggest reasons is the lack of use of cash. Credit and debit cards prevail. When I was growing up I had the understanding that the cash that I had in my hand was what I had. If I spent it right away then that was that.
Cash in hand is tangible. You can physically see it and visualize the process of its value during transactions. My grandfather would give me a dollar to get some candy at the corner store and when I got back to the house I had 50 1 cent bubble gums and a few other candies. That one dollar went fast!!
Teaching our children the value of a dollar is increasingly more challenging because all they see and understand is a plastic card being presented with no idea of the subtraction process in the accounts. Or worse yet the addition of debt on credit cards.
I am trying to really teach my kids the value of money earned, but I am having to get creative. We also need to learn these skills. If you have small children please get them started as quickly as possible. Teach them how to save and how to invest in their future. If they start early and they develop good habits they won’t have to struggle later on in life. It is a discipline. A way of life.
Here are some cool financial tips to improve your financial well-being:
(no magical order)
- We need to understand where our money is going. Look at all of your bank transactions.
- Fully understand monies coming in. If you don’t know how much you receive it will be tough to create a budget and save money.
- Create some type of spreadsheet of monies. This for me was a life saver for real. I can see year by year where my money goes.
- Compare previous months’ spending. This will give you a good guide of what the next months ahead could be. This will allow you to start making smarter financial choices.
- You may need to cut back spending to progress. This is tough but many of us spend money like it’s water.
- Create savings accounts that actually earn interest. There are lots of newer banks that offer higher interest.
- Create an emergency savings account. It is said to have a good emergency fund you should have at least 3 to 6 months’ worth of expenses. This should include everything such as mortgage or rent, car note, insurance, fuel, groceries, and so on. If money is tight start at $1,000 and then build from there.
- Set rules for what you spend. Do you buy unnecessary stuff? Be realistic and be honest with yourself.
- Try to make saving as easy as possible. Many banks and financial institutions have automatic savings, such as Spend and Save where a portion of money will automatically go into savings when you spend.
- Reduce as much debt as you can and learn about payment options. There are lots of different methods for this.
- Try to hide being able to see your savings account on your mobile app. This has helped me because if I don’t see it then I am less likely to spend it. Think smart and trick yourself if necessary.
- Learn to negotiate and shop big purchases. Take the time to do research on whatever it is. If you’re looking to purchase a new car make sure you understand the financial impact. Do you really need a new car or is it just wanting to keep up with the Jones’? You may need to learn how to prioritize things.
- Keep your credit score high and learn how to maintain it. There are lots of freedoms when you have great credit.
- When you spend money put them on a credit card that has great rewards. Pay the full amount monthly so you don’t get backed up with unnecessary finance charges. You would be surprised how much you would end up spending if you let it go.
Plan for success! Make good choices and become disciplined it will help you later in life. Remember, retirement pay isn’t guaranteed at any job, so do your part now.
Conclusion
To improve your financial well-being you need to fully understand your situation and plan for the future. Putting money away now and making your money work for you will be the best way to ensure you can be more comfortable when you get older. Live your life the best way you can.
